Marie, a real estate broker, is representing Jean-Luc in the sale of his condo in Laval. During discussions, Jean-Luc informs Marie that he recently had an issue with water infiltration in the basement, which he has since 'fixed himself' with some sealant and paint, without involving any professionals. What is Marie's ethical obligation regarding this information?

Question: Marie, a real estate broker, is representing Jean-Luc in the sale of his condo in Laval. During discussions, Jean-Luc informs Marie that he recently had an issue with water infiltration in the basement, which he has since 'fixed himself' with some sealant and paint, without involving any professionals. What is Marie's ethical obligation regarding this information?

Answer options: ✅ Marie must advise Jean-Luc to disclose the past water infiltration issue in the seller's declarations, even if he believes it's resolved.

• Marie should suggest Jean-Luc only disclose the issue if directly asked by a potential buyer, to avoid deterring offers.
• Marie is bound by confidentiality and should not disclose this information to potential buyers unless Jean-Luc explicitly authorizes it.
• Marie must conduct her own expert inspection of the basement to verify the quality of Jean-Luc's repairs before disclosing anything.

Correct answer: Marie must advise Jean-Luc to disclose the past water infiltration issue in the seller's declarations, even if he believes it's resolved.

Explanation: Under the Rules of professional conduct of brokers, a broker must act honestly and fairly in all circumstances and must not make false representations or omit to mention relevant facts. The latent defect (even if repaired) needs to be disclosed. Furthermore, Article 4.7 of the Rules of professional conduct of brokers states that a broker must recommend to a party represented to provide any useful information, particularly those that may affect the terms of the transaction.